It is understood Galaxy is preparing to bankroll Alliance Minerals via a placement of new shares in a deal being finalised on Tuesday.
Alliance shares are in a trading halt ahead of a capital raising.

Galaxy, which has about $400 million cash on its balance sheet, is expected to emerge with a toehold 10 per cent to 15 per cent Alliance stake following the placement.
Galaxy has long been seen as a potential suitor of Alliance, and its predecessor company Tawana Resources. It is understood to already have a small investment in Alliance, however it has never disclosed a stake and is not above the 5 per cent substantial mark.

Investor sources said Canaccord Genuity was in line to handle the raising.